Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Per Zac at SP Angel
Mayan Energy (MYN LN – 0.25p) – Que Bono?: While Mayan shareholders should be pleased with today’s windfall of ~$631m in shares and warrants for its 17.3% interest,what should really anger shareholders is that Gonzales (16.8% interest as at 3Q’17) and Wood (16.8%), the current CEO (shares are held via his wife), both Deloro founder shareholders as at 3Q’17, will receive ~$612m too. It may be a surprise Mayan shareholders to learn that as at 3Q’17 they had not made any contribution to Deloro. Deloro sold the 350 shares to Mayan Energy in 3Q’17 to Mayan (of whom they were directors) for $4,300 per share, thus electing to utilise Mayan shareholders to fund an investment that should have been executed under the auspices of the Mayan corporate entity in its entirety in the first place. If they had shareholder value so high in their minds when they did the deal, then (i) Gonzalez & Wood would have conducted the Deloro investment exclusively through Mayan Energy, giving the Company a minimum of 50.9%($1,857m distribution); or (ii) given Mayan Energy the opportunity to invest at ~$595 a share in the seed round, instead of $4,300 per share in round one. If Mayan Energy had the same opportunity as even the seed funders ($595/share), then its $1.505mm contribution would have equated to 2,529 shares, or 60.7% of the enlarged share capital, which would have yielded ~$2,215m, which is considerably more. So when we ask who benefits, or in legal parlance “Que Bono,” it’s clear to see that it’s not Mayan Energy’s shareholders, who have taken all the risk on behalf of Gonzalez and Wood. It is inconceivable that the seed investors were not addressing the question of further funding, as all were are at least aware the UK market and Mayan Energy’s position within it, if not intimately familiar with it. We believe that this demonstrates a flagrant disregard by the Directors of their fiduciary responsibility to the owners of the Company, and if we were shareholders in the Company, we would be seeking to explore our legal options. With regards to those seed investors that are directly connected to the Company, we believe that their role vis-à-vis the market, it raises important questions that need to be answered.
Already initiated I am told. If true, we small punters will have the chance to join in at some point I presume.
Right now Mayan is a Hold. There is no volume to sell a material holding, so at this point - don't.
Do not buy it if you do not own it. Likely the shares are going down further - just based on the odds, I mean how many times do we see this sad story on AIM-management fails, assets shown to be junk, company zeroed out, name changed, roll the dice again with shareholder funds.
Whatever cash they have most likely to get used for fixing problems / paying off creditors. Wont get invested in production.
The Company will most likely become a clean shell. Shell Co's are valued at 1-2 million quid. That means stock downside from here 50-75%.
On the other hand, it is also possible that the Board will do something unexpected and bold to energize the share price and create value for shareholders. 10% chance.
So, 90% chance company getting taken to shell status = 50-75% drop from here.
10% chance something good will happen = 2 to 3 bagger from here.
Your call. DYOR.
Is hope a good strategy? AIM shareholders are too passive. No matter how much evidence of management shennanigans.....always hope. Nothing more. Multiple cockroaches. Yet let's just sit back and blame the guy who recognizes the true problem. You see, it is tough enough as we all know to make money in shares even with a management that is truly trying to create value for shareholders. When you do not have even that (a management that is actually trying to make shareholders money) what do you think your chances are?
https://www.*************.com/views/39039/mayan-this-stinks-top-analyst-zac-phillips-on-what-is-a-monumental-scandal
Could it even be possible there are more?
And when he is, all here should give him the proper apologies and recognition.
Austin chalk can be good, a good frack on one of these would do a lot to boost the share price no doubt
Any thoughts on near term direction of oil prices?
Not even a chance of 200 here as composed
not to mention, MYN does not own 100% of interest. So to get 80 b/d they would have to really have closer to 120-150 barrels in total from the wells depending on which wells make the production. not happening.
80 gross barrels after royalty interests would yield 60 for 30 days is 1800 net a month. Wti is $71 but usually goes in the field for less, so assume $65 to the company gets you to $117000 per month in revenue. state tax of 5% nets $111000 per month. Operating cost per well across 10 wells of $5k per month is $50k. So in a perfect month you have $60k in field cash flow. In a perfect month this is not close to enough to cover accounting, Board, etc plus all the bills and debts the company has. but this is the oil business and nothing works perfectly, certainly not for MYN. Any wells down, etc the company is in a hole. Rain days. Weather shut in as the company has been prone to in last several years. To be solid the company has to, on a perfect day, have much more than 80 barrels gross.
Because with smart decisions your shares would be at 1p do u want that?
I don’t care who runs this company if they would do what is right for shareholders and smart. But they won’t. This stock could be at 1p in five days but not with these guys running it. These are the kind of guys that stand on a train track and see a light getting bigger.....instead of taking immediate action they want to confirm that what they are seeing is not some astronomical phenomena first.....
Does anyone else think that while perhaps the new chairman makes sense wanting to do a lengthy process, that in this situation a quicker solution or at least plan from the Board to give shareholders some hope might be called for?
Unrealistic from these assets. 200 tops. But 200 would be great.
I don't know, at this price the value is backed by investments. Not a big fan of CW, but it seems as if anything positive should take the shares up, up, up.
At the current price, the share value is supported by the Deloro investment and the Block Energy investment so I do not think it can go much lower. Time for a top up?
If some positive change is implemented immediately, quite a bit. Need new CEO, crack operations team with legit credentials. CEO needs to put some money in and have a plan for making the company generate substantial cash flow immediately without any new investment. If anyone knows such a chap send him on!
Are not Eddie and Charlie's wife still the two directors of Deloro?
Even though he is gone from Mayan he is still in charge of Deloro?
average punter.
https://www.*************.com/views/38720/mayan-energy-statement-is-laughable-whole-board-must-go-now-says-tiop-analyst